Why are IT costs so high?

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An Australian IT Start-up Update!
November 29, 2017
Second 2018 CIO Survey
Second 2018 CIO Survey
September 19, 2018
Why are IT costs so high

The failure rate of BDM’s working in the IT industry in Australia is estimated at over 50% and those cost have to be recouped somewhere so it ends up in the fee’s charged to the buyers of IT. In other words, IT buyers are paying for a failing sales model in their monthly invoice.

The BDM model is shrinking as the task to find new customers is becoming too much for one person.

To this point, I have just received a call from a past employee to share his excitement about the confirmation of a job he had applied for as a BDM with an IT supplier. Great news until he told me his gross profit target and the time allowed to achieve that target.

In an environment where there are no leads to quote and close, in an environment where there is no definitive target market, in an environment where there is a six to nine months sales cycle I feel his excitement will be short lived.

The steps to finding the right customers for any business starts with identifying the target market, sourcing the contact data within that market, segmenting the message, getting someone to take your call, getting someone to listen to your message and then getting someone to buy from you and that is only part of the process. And how do you keep in contact with people who may be a future prospect but can’t buy today?

For every ten prospects spoken to probably one is real, the others have had their time wasted and the BDM has wasted their own time, with the company and the buyers both picking up the bill for that waste of time and resource.

Predictions are that in ten year’s time 33% of BDM roles will no longer exist as the digital revolution and new ways of matching prospects with suppliers emerge. In the meantime, I wish good fortune to my colleague in his new role.

Mark Hood CEO

Australian IT Market Place


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